Hayward Holdings Beats Q4 Estimates, Provides Upbeat 2026 Outlook
Hayward Holdings Inc (NYSE:HAYW), a leading designer and manufacturer of pool and outdoor living equipment, closed its fiscal 2025 with a strong fourth quarter, surpassing analyst expectations and issuing guidance for the coming year that signals confidence in continued growth. The company's financial results, released on February 25, 2026, were met with positive momentum in pre-market trading.
Earnings and Revenue Performance Versus Estimates
The company's fourth-quarter performance demonstrated solid execution, with both top and bottom-line results exceeding consensus forecasts.
- Revenue: Hayward reported Q4 net sales of $349.4 million, a 7% increase year-over-year. This figure came in ahead of the analyst estimate of approximately $338.7 million.
- Earnings Per Share (EPS): The company reported adjusted diluted EPS of $0.29 for the quarter, surpassing the estimated $0.2869. On a GAAP basis, diluted EPS saw a more significant jump of 24% to $0.31.
For the full fiscal year 2025, the company posted net sales of $1.12 billion, also a 7% increase, with adjusted diluted EPS rising 15% to $0.77.
Market Reaction and Price Action
The market's initial reaction to the earnings beat and forward guidance has been positive. In pre-market trading following the announcement, Hayward's stock was up approximately 3.7%. This upward move suggests investors are responding favorably to the company's ability to outperform in the quarter and its optimistic view for the year ahead. The positive pre-market action stands in contrast to the stock's performance over the past month, which had seen a slight decline.
Key Takeaways from the Quarterly Report
Beyond the headline numbers, Hayward's earnings release highlighted several important operational and financial strengths:
- Margin Expansion: The company successfully expanded its gross profit margin by 160 basis points to 48.5% in the quarter, driven by effective pricing strategies, lower warranty costs, and operational efficiencies, despite facing headwinds from tariffs and inflation.
- Strong Cash Generation: Hayward significantly strengthened its balance sheet, ending the year with $329.6 million in cash and cash equivalents. Net cash from operating activities increased by $44 million to $256 million for the full year, enabling a reduction in net leverage.
- Segment Performance: The core North America segment saw an 8% increase in net sales to $308.7 million. The Europe & Rest of World segment, while experiencing a slight 1% sales dip, delivered a substantial 28% increase in segment income, indicating improved profitability.
- Strategic Positioning: Management emphasized the strength of its aftermarket-focused business model, which represents approximately 85% of sales, and ongoing adoption of its connected SmartPad technology platform.
Forward Guidance Versus Analyst Expectations
Looking ahead, Hayward introduced its financial outlook for Fiscal Year 2026. The company expects net sales to increase approximately 4% from the 2025 level, which would equate to roughly $1.167 billion. This projection appears slightly below the current analyst sales consensus of $1.186 billion for 2026.
However, the company's earnings guidance is more robust. Hayward forecasts adjusted diluted EPS in a range of $0.82 to $0.86, representing growth of 6% to 12% from the 2025 adjusted EPS of $0.77. This midpoint of $0.84 is above the current analyst EPS consensus of approximately $0.863 for the full year 2026, which likely contributed to the positive investor sentiment.
Conclusion
Hayward Holdings delivered a clean earnings beat for the fourth quarter, capping off a year of sales growth and meaningful margin expansion. The company's ability to generate strong cash flow and provide confident, earnings-focused guidance for 2026 has been rewarded by the market in early trading. While the sales outlook is slightly conservative compared to some estimates, the stronger projected profit growth underscores management's focus on operational efficiency and profitability.
For a detailed look at Hayward's historical earnings and future analyst estimates, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, an endorsement, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
